PSS World Sells Whole Self For $1.5 Billion

Nearly six months after launching a plan to sell the businesses that make up a quarter of its revenue, medical products distributing company PSS World Medical has gone ahead and sold its entire self for $1.46 billion.

Associated Press

McKesson, a healthcare IT and services company, is buying PSS for $29 a share, a 34% premium to Wednesday’s close.

PSS World had said in early May, amid weak results, that it would sell its skilled nursing facilities and its specialty dental practices units. Last month it reached a deal to sell the dental business, the smaller of the two units, for $68 million to Chicago private-equity shop Beecken Petty O’Keefe & Co.

McKesson, which has seen increased revenue for over a year on the strong performance of its U.S. pharmaceutical distribution business, said it will combine PSS World with its medical surgical business. Including the assumption of PSS World’s debt, the deal is worth $2.1 billion.

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